Mercator Gold has entered into a partnership with Remote Energy Solutions (RES), in relation to the Warm Springs solar power project in New Mexico, USA. The Warm Springs project is being developed in close proximity to the Copper Flat copper-gold-molybdenum-silver project by Mercator’s subsidiary Warm Springs Renewable Energy Corp (WSREC). The initial objective of the Warm Springs project is the construction of a 20 MW solar power plant, with permitting targeted for completion by the end of 2010 and construction targeted to commence during 2011 subject to ongoing feasibility work.
Feasibility and permitting is expected to cost up to $750,000 while the estimated construction cost of a 20MW facility is in the range of $60-80 million. Discussions have begun with a number of solar power plant constructors and technology providers – both traditional flat plate photovoltaic and newer concentrating solar technologies being evaluated.
WSREC believes that there may be potential for the expansion of the initial 20 MW facility to 80 MW capacity. In addition to the sale of electricity, WSREC is exploring the potential for the sale of Renewable Energy Certificates (RECs), demand for which is expected to grow considerably in the US as under Renewable Portfolio Standard (RPS) regulations.
Patrick Harford, Managing Director of Mercator, commented “Copper Flat will have a genuine claim to be considered one of the most environmentally sustainable mines in the world on the basis of its association with the Warm Springs project. Besides complementing the Copper Flat permitting process, the Warm Springs project is projected to be highly profitable in its own right, and the involvement of ACS Asia has the potential to aid the growth of that business.”
The Warm Springs project will be operated and financed independently of Copper Flat, and Mercator’s interest in WSREC and the Warm Springs project is unaffected by the sale of the company’s exclusive option to acquire a 100% interest in Copper Flat to THEMAC Resources. The negotiations for this sale are still in progress but will result in Mercator having a significant interest in both Copper Flat and THEMAC.